Skills reforms a promising start

Why Labour’s Skills England pledge looks good for accountancy.

The four weeks since the general election have been as busy as one might expect. Following the decisive result, power transferred to a new government swiftly and seamlessly. Labour then set about the business of enacting the first of the policies outlined in its manifesto.

All of that activity culminated in a comprehensive King’s speech, delivered to parliament on 17 July. Among the many items announced, the new Skills England Bill took its place alongside other Labour manifesto commitments to be rolled out over the next 12 months.

The speech signalled that Labour’s pledge to create a new overarching body, Skills England, would indeed go ahead. It also announced that the DfE would “Undertake a short pause and review of post-16 qualification reform at level 3 and below, concluding before the end of the year.”

The signs are that this government is taking reform seriously. It has pledged that Skills England will “bring together businesses, providers, unions, mayoral combined authorities (MCAs) and national government to ensure we have the highly trained workforce that England needs”.

Reform timing matters

It’s encouraging to see this issue so prominently positioned on the government’s agenda. The new education secretary clearly recognises the time required to get a Bill on the books and reforms in place is considerable, so has acted with speed to get the ball rolling.

And timing matters on this. Given the backdrop of poor coordination across government and regulators, the previous timetables associated with each of these reforms required in some instances awarding bodies to potentially have to redevelop qualifications very early in their lifecycle.

We’re pleased that the previous government’s plans to defund qualifications overlapping with first-wave and second-wave T levels have been paused. AAT has applied for extension to adult funding, should the reform go ahead, and will receive a response after this pause.

That decision provides a welcome opportunity for us to make our voice heard on future plans and to help ensure policy is designed with coherence and clarity in mind. That pause, if used wisely, could end up saving a lot of time and cost further down the line.

Consolidating skills bodies

But of course, the devil will be in the detail. It is telling that the government plans to subsume IfATE into Skills England. That points towards a desire to bring skills policy under one roof, with emphasis on coherence, clarity and – hopefully – delivery.

That would suggest that the current system, where various bodies oversee disparate parts of the skills framework – sometimes complementing each other, but often not – has been viewed by the new government as no longer fit for purpose and is ripe for reform.

So, we welcome the move towards a single skills body that feeds into the government’s broader industrial and economic strategy. As one of the UK’s leading awarding bodies, AAT has always maintained that technical qualifications are vital to supporting growth.

Technical qualifications deserve respect

But it’s also true to say that for too long technical qualifications have been relegated to second-class status and denied parity of esteem. This needs to change, and at AAT we believe it’s vital that funding is protected for post-16 qualifications that have a clear employer demand and strong learner outcomes.

The move to better promote technical and vocational education and to set it on an equal footing with higher education is very much welcome. Especially given businesses have been repeatedly calling for skills that better meet their needs.

Meeting employer needs

Employer demand is crucial. Ultimately the development of skills programmes has to serve a wider economic purpose – that is to provide employers of all kinds with adequately qualified employees to meet their needs.

And while government, academia, training providers and professional bodies are vital stakeholders, we must maintain our focus on employers and their needs. It’s something we have held central at AAT, and will continue to do so.

Conclusion

Of course, these reforms can’t solve everything overnight. We still require investment in other areas, particularly in pushing for greater financial literacy in young people as well as developing a more digitally savvy workforce.

But it’s a good start. And, taking an optimistic view, the developments since the election are leading towards a more coherent skills policy. It may, at long last, create an effective and joined-up framework for the next decade or more.

Adam Harper is AAT's Director of Professional Standards & Policy..